You want to minimize the risk to the organization, so you’ll opt for which contract type?

posted 2¼years ago by Natalie2000
© Copyright: Project Management Professional (PMP) Study Guide by Kim Heldman, Sybex Inc., Alameda, CA, USA, 2002, page 240, question 19
Contracts | Procurement Management

You are the project manager for an outdoor concert event scheduled for 1 year from today. You’re working on the procurement plan for the computer software program that will control the lighting and screen projections during the concert. You’ve decided to contract with a professional services company that specializes in writing custom software programs. You want to minimize the risk to the organization, so you’ll opt for which contract type?

A. Fixed price plus incentive
B. Cost plus fixed fee
C. Fixed price
D. Cost plus incentive